March 9, 2023

What is a GRP?

We refer to Government Resource Planning (GRP) as software designed to meet the needs of public financial management.

A GRP tool is a modular platform, with different solutions within the same system. However, other highlights of this software must be considered. Most importantly, it allows budget management. This is because it lets us know the transactions that were made, adjustments, and collections, so we can better control and monitor the economy of the organization.

ebook K2B Sector Público

GRP software is based on the efficient use of finances, through commitment accounting, with the budget as the legal embodiment of government goals.

Over the past 40 years, this type of solution has evolved and brought more and more benefits to public entities. Initially, they were very simple and focused on automating specific tasks. With time, we began to talk about shared task management.

With the advent of the new century and the digital era, its next phase of evolution came as a result of efficient process integration, which enabled the entity to better position itself. The last stage is happening in the present era, with the tools focusing on business models and, above all, customer management.

Good financial software must allow agile process automation, and provide a quality user experience. Obviously, artificial intelligence is necessary for the analysis and management of thousands of technologically generated data. It is only through this information that we are able to provide citizens with a differentiated service.

As with any financial solution, the platform relies heavily on accounting management. For example, a public entity handles a lot of travel expenses, employee per diems, funds to be rendered, as well as extraordinary expenses. A GRP solution allows keeping track of these payments and, above all, recording information with flexibility. In fact, K2B has a treasury module, enabling payment tracking and control, whin in turn simplifies visibility and monitoring of disbursements.

In addition, it is necessary to keep a record of the activities carried out, including reports and analyses. Considering that public entities are always reviewed and controlled by other agencies and the public, keeping a record of all their activities is crucial. By using GRP software, you can get instant reports, make movements transparent, and make processes more efficient.

On the other hand, inventory and purchasing management must always be kept in mind. For example, in the context of public works. GRP tools make it possible to keep track of contracts, whether they are open or closed, whether they are in stages or if an extension has been granted. Additionally, HR management should be considered. With a GRP solution, roles, salaries, per diem payments, and extra expenses, such as overpayments, can be reviewed.

Inventory and fixed asset management is another key aspect of accounting management. Optimum resource utilization is essential to achieving economic efficiency. As a result of efficient asset management, we can track where items are stored, and who is using them. We can also improve our control over what we have and where we use it. This way, each asset can be put to qualified use, and future purchases and acquisitions can be reduced.

GRP, a comprehensive management system for the public sector

 There are similarities between public and private entities. As an example, they both handle payroll, purchasing, and invoicing. But government agencies have some particular characteristics. Therefore, GRP software differs from traditional ERP software.

This means that a GRP tool is integral since it is a platform where all tasks are unified. Additionally, it is a multimodular solution, which means that you can access all the modules the organization needs from one place.

Above all, we are talking about a disruptive technology solution. This means that its implementation breaks a barrier that the entity did not anticipate and causes a transcendental change in daily operations. Organizations should make sure that GRP software adapts to their needs and regulations.

On the other hand, this type of platform must be customizable according to the organization’s requirements. This will enable the automation of financial processes in order to carry out the entire accounting management of the institution.

 GRP software adoption and its multiple applications

Whenever we talk about public organizations, we are referring to regulations and laws that must be followed regardless of the country, province, or municipality where they operate. Therefore, the use of a GRP solution offers the clear advantage of standardized processes according to region-specific regulations. [4] For instance, it allows only one record, i.e., duplicate records are not accepted.. Furthermore, as a result of process traceability, outcomes are more reliable and efficient in terms of execution time.

Undoubtedly, traceability is essential for the proper management of any institution, because it allows control and monitoring of all processes online. When it comes to the purchase process, we can track its evolution from the moment we place an order to when the product is dispatched and received.

Concerning the efficient and effective management of information, a GRP tool is ideal to achieve these objectives. A public agency has different activities and processes. But what if I don’t manage my invoices and collections wisely? Implementing this type of solution allows visibility and transparency of such processes, and therefore a better follow-up and analysis of all the information collected.

Another agency’s main concern is improving the quality of its services. At the end of the day, the ultimate goal of any company is always the customer, so providing first-class customer service is crucial to achieving a cutting-edge user experience. With GRP software, citizens are the users, and by automating management, better information management is achieved, which enables us to offer a more direct and reliable service.

Transparency of information runs hand in hand with traceability and reliability. The public sector must maximize both aspects since there is always a controlling and reviewing entity. Also, it is a public entity whose data must be accessible to the public. A GRP solution provides not only confidence in the work of the entity but also enables data to be shared with other transversal systems, thus ensuring integral work management.

In public institutions, the importance of having integrated and transversal software cannot be overstated. Government agencies must deal with a variety of institutions, such as tax authorities, financial authorities, and so on. But rather than being management systems, these are liability systems. A GRP platform must be seamlessly integrated with other solutions used by these entities to ensure that processes are fair, controlled and regulated. For example, in Uruguay it is necessary to integrate with SICE and SIIF; in Mexico with the Tax Administration Service (SAT) and CompraNet; in Costa Rica with the ATV of the Ministry of Finance and the Integrated Public Procurement System (SICOP); and in Paraguay with the State Undersecretariat of Taxation (SET), the National Directorate of Public Procurement (DNCP) and the Integrated and Analytical System of Information on State Reform (SIARE). 

Last but not least, the modern digital age demands that the tool can be accessed and used anywhere and at any time. By having the processes digitized and incorporated into a single platform, we can review the data when needed and prepare the reports and briefings we need instantly.

 GRP software implementations and use cases

As we saw earlier, by adopting a GRP tool, a public agency gets much more than a financial system. From visibility and transparency of processes to traceability and tracking of operations. However, the human element plays a crucial role in the success or failure of any digital project in any organization. A new technological solution will not be effective if employees and members are not aligned. Therefore, a central point of any project is to have a solid organizational culture.

At K2B we recommend starting with an evangelization and education plan, generating supportive attitudes and habits, resulting in a sense of confidence in the project. During implementation, we must keep the final goal in mind, with a methodology and plan that guide us along the way. Above all, we must work hard on internal communication and bring clear messages to all those who are part of the institution.

On the other hand, the product itself must have a functional coverage. As a public institution, it is important to find a tool that covers all your requirements and needs. In order to comply with laws and regulations, each organization must have a flexible and adaptable solution.

Now, let’s take a logistics and warehousing institution as an example. When the organization first discovered K2B and its GRP solution, it did not have an accounting consumption record-keeping system, nor were its fixed assets recorded, and a great deal of time was wasted in maintaining manual records (using Excel spreadsheets, for example).

After the K2B solution was implemented, what happened?

  • All assets and products were recorded at 100%.
  • Full control over warehouse movements.
  • Time and resources are optimized by 80%.

Purchasing is another case to keep in mind. Before adopting a GRP platform, companies had no record of purchase invoices, since they lacked a system (therefore no control over accounts payable), and they were unable to control the budget, or manage fixed assets effectively.

By implementing K2B’s GRP solution, these types of entities achieve 100% of invoices registered, which allows 100% control and registration of accounts payable. Moreover, this implementation allows the agency to know which invoices have been registered, what balance is pending, and whether there has been any advance payment. Moreover, it enables comprehensive budget management, as well as the registration and control of all fixed assets, including their useful life and depreciation.

 With over 45 clients, K2B offers its services in more than six countries. This translates into substantial experience and knowledge needed for such projects.


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